We recommend investors to buy for the following reasons:

  • USDCAD is at the lower end of the latest 6-month trading range, and very low RSI indicates an upward correction.

Potential/strategy:

  • T/P = 106.7. 

  • S/L – to be put just below the trading range, at 101.85. 

  • Large risk/reward – 1: 5.7. 

  • Horizon for this recommendation: 1 month


Risks:

  • Share and commodity prices continue to rise. 

  • The central bank of Canada raises interest rates. 

  • The exchange rate breaks out of the slightly falling trend channel. 

  • Gains may increase or decline as a result of exchange-rate fluctuations. 

  • We also refer to Disclaimer & Disclosure below.


Chart 1. USDCAD

USDCAD 

Chart 2 – 5-year past performance, USDCAD

USDCAD